If apple, which controls over 75 percent of digital music sales, was able to dictate song pricing for years, this implies that: Companies with strong network effects tend to enjoy substantial bargaining power over partners.
<h3>What is bargaining power?</h3>
Bargaining power can be defined as the way in which a company tend to have the ability to negotiate than another company in which the company with the best negotiation power tend to win the deal in which both companies are negotiating on.
This scenario best illustrate bargaining power which is what makes it possible for apple to have control over seventy five percent of digital music sales.
Therefore we can conclude that apple have strong bargaining power over others companies.
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Answer:
Company Pea
Consolidated financial statements should be prepared to report the financial status and results of operations for:
Essone - 90%
Esstwo = 72% (90% x 80%)
Essthree = 72% (90% x 80% x 100%)
Explanation:
Company Pea is described as the holding or parent company of Company Essone. This means that Essone is Company Pea's subsidiary. In preparing consolidated financial statements to report the financial status and results of operations for Company Essone, Company Pea will consolidate 100% of Company Essone while accounting for noncontrolling interest of 10% (effectively 90%).
When Company Essone is consolidating its financial statements, it should consolidate 80% of Company Esstwo while Esstwo consolidates 100% of Company Essthree.
But since Essthree is also a subsidiary of Company Pea, Company Pea will consolidate Esstwo and Essthree's financials to the tune of 72% respectively, while consolidating 90% of Essone's.
Answer:
Some examples of capital used to produce goods are machinery, human workers, equipment, basically anything that is used by a factory in the production process. You didnt list any options so I can't tell you which one isn't, but I hope this helps!
Explanation:
The equilibrium price would decrease, and the effect on equilibrium quantity would be ambiguous.
Explanation:
If demand falls and supply declines, the quantity of balance may decline, and the price of balance can increase, decline, or stay the same. If demand declines and output stays the same, the quantity of balance declines and the price of balance decreases.
Decreased demand and decreased production could contribute to a decrease in the price of balance, but the impact on the quantity of balance can not be calculated.
Consumers often put a lower premium on the product for every amount, so suppliers are able to tolerate a lower demand; thus, the output should decline.
Answer:
Price ceiling binding
price floor binding
Price floor binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
The maximum price ($2.50) is less than the equilibrium price($3) . So it is a binding price ceiling
The minimum price ($3.40) is greater than the equilibrium price($3) . So it is a binding price floor
